APM gas price ceiling raised 4% to $6.75 per mmBtu from 1 April 2025
The Petroleum Planning and Analysis Cell (PPAC) notified on 31 March 2025 that the price of APM gas from old nomination fields would rise to $6.75 per mmBtu from $6.50, effective 1 April.
Summary
The Petroleum Planning and Analysis Cell (PPAC) of the Petroleum Ministry notified on 31 March 2025 that the price of natural gas from old legacy fields under the Administered Price Mechanism (APM) would rise by about 4%, from $6.50 to $6.75 per million British thermal units (mmBtu), effective 1 April 2025. It is the first increase in two years. APM gas is produced by ONGC and Oil India from fields given to them on a nomination basis and is supplied for CNG and piped cooking gas, fertiliser and power. Under the April 2023 formula, domestic gas is priced at 10% of the monthly average import price of crude oil, with a floor of $4 and a ceiling of $6.50; the Cabinet chose a two-year freeze followed by annual increases of $0.25 per mmBtu. PPAC said the formula price for April 2025 would have been $7.26 per mmBtu, so the $6.75 ceiling applies; it is to stay until March 2026 and rise by another $0.25 in April 2026. The formula followed the 2022 Kirit Parikh committee review.
Key facts
- Notified
- 31 March 2025, by PPAC (Petroleum Ministry)
- New price
- $6.75 per mmBtu from 1 April 2025 (was $6.50)
- Producers
- ONGC and Oil India (nomination fields)
- Formula (April 2023)
- 10% of monthly average crude import price; floor $4, ceiling $6.50
- Formula price for April 2025
- $7.26 per mmBtu, capped at the ceiling
- Next step
- Ceiling to rise by $0.25 in April 2026
- Background
- Kirit Parikh committee (set up in 2022) on gas pricing
Practice MCQs 4 questions
From 1 April 2025, the price of APM natural gas from old nomination fields was raised to what level?
Show answer
Correct answer: D — $6.75 per mmBtu
PPAC notified a rise from $6.50 to $6.75 per mmBtu effective 1 April 2025.
Which body of the Petroleum Ministry notified the APM gas price revision on 31 March 2025?
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Correct answer: A — Petroleum Planning and Analysis Cell
The notification came from the Petroleum Planning and Analysis Cell (PPAC).
Under the April 2023 pricing formula, domestic APM gas is priced at what share of the monthly average import price of crude oil?
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Correct answer: B — 10%
The formula prices domestic gas at 10% of the monthly average crude import price, subject to a floor and ceiling.
Consider the following statements about APM gas pricing: 1. The April 2023 formula, which followed the Kirit Parikh committee review, set a floor of $4 and a ceiling of $6.50 per mmBtu. 2. PPAC's formula price for April 2025 was below the new ceiling of $6.75 per mmBtu. Which of the above is/are correct?
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Correct answer: A — 1 only
The April 2023 formula had a $4 floor and a $6.50 ceiling. PPAC said the formula price for April 2025 was $7.26, above the ceiling, so the $6.75 cap applied.